The outlook for the Canadian dollar technical price: near-term trade levels
- Canadian dollar updated levels of technical trade – daily and intraday charts
- USD / CAD the first major barrier falls on the eyes of fresh perennial lows / bears
- Main Short Term Support 1.2056 – Resistance / Short Term bear repeal
The Canadian dollar has collected more than 1.6% against the rally US dollar from the beginning of the month with a breakdown USD/ CAD accepts prices at multi-year low prices. While the broader focus remains a matter of weight, the decline is approaching the initial support targets of interest, and we are looking for a slightly lower response to guide it. These are updated targets and cancellation levels USD/CAD price charts. Overview my last Strategy webinarfor its thorough distribution Loonie technical setup and more.
Canadian Dollar Price Chart – USD / CAD per day
Technical outlook: In those of the previous month Canadian dollar price outlook we noted it USD / CAD had,broken below accession support / monthly opening range drops and keeps focus down the ends the month… recoveries should be limited to 1.2485 if the price actually falls below 1.2358 is needed to keep the immediate short-term viability viable.“Indeed, the price closed the April trade below this level and tested it even as resistance to the May opening.
The price is now ready for the fourth consecutive daily decline, with the first main support target being slightly lower 1.2056 / 61– area defined by 50% Fibonacci The 2011 rally and 2017 swing are low. We are looking for a possible switch to this threshold by breaking / closing, which is necessary below to keep the immediate short bias intact support goals 1.20-handle and May 2015 lower 1.1920.
Canadian dollar price chart – USD / CAD 120min
Notes: A closer look at the Loonie price operation shows that the USD / CAD will continue to trade within a close declining channel, reaching its peak in late April with the weekly newspaper opening area develops slightly above accession support. Initial rexistence stands at the close of the 2017 low day at 1.2156 with a wider decline, it was now lowered to its lowest level in 2018 1.2247– a breach / closure would be needed to indicate a more significant lower.
Bottom line: The USD / CAD distribution is approaching the initial support targets slightly lower at the beginning of the month and bears may be vulnerable in the near future. From a trading perspective, see how to reduce the short exposure / lower guard stops of the 1.2056 / 60 reference zone test – rallies should be limited to 1.2156 IF the price rises lower, falling to 1.1920 towards the risk of falling. Check out my latest review Canadian Dollar Weekly Outlook for a closer look at the longer-term level of USD / CAD technical trade.
Review Michael’s full trading strategy for a breakdown Fundamentals of the Technical Analysis Series Bluilding a Tirradiation Strategy
Canadian Dollar Trader Rating – USD / CAD Price Chart
- Summary IG customer mood indicates that traders have a net long USD / CAD ratio of +4.16 (80.63% of traders are long) – usually bear reading
- There are long positions4.35% higher than yesterday and 2.98% lower than last week
- Short positions are 18.22% higher than yesterday and 6.64% higher than last week
- We usually view the contradictory situation of the crowd, and the fact that traders are net long indicates a continuing decline in USD / CAD prices. Traders are less than last week compared to last week. Recent changes feeling be warned that the current USD / CAD price trend may soon turn higher, despite the fact that traders will remain the length of the network.
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– Written Michael Boutros, DailyFX currency strategist
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